1996 (10) TMI 296 - AT - Central Excise

Summary

Issues:
- Benefit of credit under Notification No. 201/79
- Transfer of credit under Rule 57H(3)(b)
- Denial of input credit to respondents
- Legal complications regarding credit transfer and refund

Analysis:
The appeal concerns the benefit of credit under Notification No. 201/79, specifically regarding the transfer of credit under Rule 57H(3)(b). The respondents sought to either transfer the credit to RG 23A Part II or receive a refund in cash. The JDR argued that the respondents were not eligible for the Modvat facility on 1-3-1986, questioning the transfer of credit. The Consultant for the respondents contended that the denial of input credit was unjustified, citing a previous order in their favor. The Tribunal acknowledged the legal complexity, noting that Notification No. 201/79 did not allow credit refunds in cash, emphasizing that the relief granted was for finished goods' duty attributable to inputs. Despite the restoration of credit on the books, the rescission of the notification posed challenges. The Tribunal highlighted the need for a fresh examination in light of the M.R.F. case, directing the original authority to reconsider the issue of cash refund based on the Tribunal's decision. Ultimately, the appeal was allowed with directions for further review.